AIR TRANSPORT
ACE
lobbies the
House of
Lords
LONDON ~
Independent charter carriers
of the European Economic
Community have submitted
their arguments for free
competition within the EEC
to the British Parliamentary
House of Lords, which is
debating the subject of Euro
pean air transport policy.
ACE carriers (Association
des Compagnies Aeriennes de
la Communaute Europeenne)
argue that some 80 per cent of
air travel is motivated by
leisure, which is their special
isation, and that by 1990 the
figure will be 90 per cent. ACE
maintains that its carriers fly
half of the EEC's passengers
each year and well over 40 per
cent of the revenue passenger
kilometres, yet operate under
restrictive rules which are ille
gal because they contravene
the competition rules of the
Treaty of Rome.
For all their legal correct
ness, these well-worn argu
ments have got nowhere with
the EEC's national govern
ments. The reason for this,
ACE maintains, is that the
governments own the airlines
which the current protective
rules and bilaterial treaties
favour. So now ACE is trying
to make sure that the Upper
House of the British Parlia
ment is on its side. The reason
for the timing of this lobbying
attempt, and its precise
target, is the Lords' discussion
of the European Commis
sion's Memorandum No 2
(M2). M2 is the Commission's
attempt to find a compromise
solution to air transport libe
ralisation which the EEC
member Governments will
accept. But ACE does not want
compromises, and alleges that
M2 is a pathetically watered-
down attempt to move
Community air transport in
the direction of legality.
Wolfgang Krauss, ACE's
president, explained where he
thinks air transport stands.
Speaking at the Seeheim
conference on European Air
Transport Policy, he said that
the business is "in the final
industrialisation phase . . .
this phase will probably take
some ten years in countries
with a relatively free economy,
or more in other countries.
"The United States has
elected to enter this phase
first in a rather dramatic way
by deregulation. We consider
this the hard way ... never
theless I believe that Euro
pean air transport will not
escape, but will become the
subject of this industri
alisation process too, whether
we want it or not, because it is
inherent in the industry's
development and not due
to its political or economic
environment".
Euro
regionals
haveto
compete
LUTON ~
The UK Department of
Transport has given its
approval to two British
airlines to operate scheduled
services between Luton and
Amsterdam.
The DoT upheld an appeal
by Luton-based Euroflite to
operate on the route after the
Civil Aviation Authority had
previously awarded the route
solely to London European
Airways. The DoT's decision
is seen as an indication of its
more liberal attitude towards
competition on services
between the UK and the
Continent.
London European, which
has invested £250,000 in set
ting up its service, was sur
prised by the DoT's decision.
Managing director Nigel
Harford said: "This appears to
be a major slap in the face for
the CAA whose whole licens
ing role seems to have been
brought into question.
"In the public hearing last
year before the CAA, one of
the few things that was agreed
by all parties and was
confirmed by the CAA in its
decision was that putting two
carriers on the route would be
potentially suicidal".
Rivals Euroflite also admit
ted to being "rather surprised"
that the DoT had given the
green light to both airlines.
"It is going to be extremely
competitive, and if there is
enough traffic to justify two
carriers remains to be seen,"
says manager Lionel Wood-
row.
He says that Euroflite
would be looking at ways to
rejig its schedules on other
services to enable it to devote
resources to the new route and
would probably have to
acquire larger aircraft than its
current fleet of Jetstreams. A
starting date for the service
has not yet been set, whereas
London European's Viscount
service started on February 25.
MARKET PLACE
Japan Air Lines has signed
a $300 million order with
Boeing for three more Boeing
747s for delivery in March and
August 1986. The order is for
one 550-seat short range 747
for JAL's domestic routes, a
long range 747-200B, and a
747 freighter. Japan Air Lines
is the 747's largest customer
with 50 of the type. The
Japanese carrier is committed
to selling off its 12 ageing DC-
8s. JAL says that it has found
a home for two -72F versions
although would not disclose
the new owner. New Canadian
charter airline Nationair
lease-purchased two ex-Japan
Air Lines DC-8-61s and put
them to work at year end
on charter services from
Montreal to holiday desti
nations in the Caribbean and
South America.
British Airways has
converted three of its options
on an additional 12 Boeing
757s into firm orders. The
aircraft will be delivered by
the year end, boosting BA's
fleet of the narrowbodied type
to 21.
British Caledonian is in the
"11th hour of negotiation" for
the purchase of a secondhand
DC-10-30 and a Boeing 747 for
its new routes to Saudi Arabia
and New York this year.
Details will be announced in
the next two weeks, the airline
says.
New CF6 for A300-600
Airbus Industrie
fitted its
A300-600
demonstrator
aircraft with the
General Electric
CF6-80C2 in
February, and
the aircraft
will make its
first flight
with this
engine marque
in March.
Certification for
this combination,
ordered by Thai
International, is
planned for
September.
FLIGHT International, 2 March 1985